Comment on Zerodha - Margin Policies

himanshukumar733 commented on 18 Jun 2014, 06:15 PM

Hi Nithin,
I am both Zerodha and ICICI Direct user. ICICI Direct provides a intraday feature called OptionPlus only for Nifty ATM Options. In this, you can buy or sell ATM options with margin requirement of 40%.e.g. if i sell 7500 call 100 options at 100 rupees, I will need Rs 4000, same for buying it. One has to mention SL while entering the order which is a market order, and on that SL basis limit price is calculated which is generally 20% below/above the SL mentioned.

Considering that one usually keeps SL at 20% in options, and another 20% for limits calculated by broker, its very safe to provide trading margin with 40% of capital for intraday option trading for ATM options( strike points within 200 point range of current Nifty Spot Price). I understand that for OTM options this can be risky for broker as values can increase/decrease suddenly but for ATM options 40% is very reasonable margin requirement.

Request you to consider this at this is very useful feature to use intraday and I don’t want to pay heavy brokerages to ICICI!!

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